Bitcoin: Balinese villa sells for more than 800 bitcoins in largest cryptocurrency transaction yet

A luxury villa in the deLMango Villa Estate, an upscale resort in Bali, Indonesia, has sold for more than 800 bitcoins, making it the largest bitcoin transaction to date, according to reports.

A luxury villa in the deLMango Villa Estate, an upscale resort in Bali, Indonesia, has sold for more than 800 bitcoins, making it the largest bitcoin transaction to date, according to reports.

According to the Wall Street Journal, the residence was purchased by an anonymous buyer for the equivalent of more than $500,000, although the actual price was not revealed. BitPremier CEO Alan Silbert told the publication that the buyer was an “early bitcoin adopter.”

Ronny Tome, the developer of the villa, also told the Journal that the transaction was a smooth one, with the customer transferring just one bitcoin to his online wallet in an initial test.

“The whole thing was done in an hour. If we had gone through normal bank transfers, it would have taken a few days or a week,” Tome said.

However, Silbert told Coin Desk that due to the strict property regulations for foreigners, the buyer technically bought a “long term lease.” The transaction was completed in February.

The two-bedroom villa that resembles Julia Roberts’ “Eat Pray Love” Bali retreat is one of the three residences up for sale in the high-end resort, which now has seven completed villas. Five other villas are still under construction and will probably be completed in the next five months, according to the BitPremier website listing.

The listing also explains that the investment will yield the buyer a net return on investment of 8 percent if used as a rental.

Silbert said he was pleased with the deal. Talking about the public’s increasing faith in the cryptocurrency, he told Coin Desk: “This definitely validates the business model. It shows that bitcoin users want to buy things that are unique, and that are above and beyond T-shirts and electronics.”

First introduced in 2009, the digital currency requires people to solve a certain set of complex puzzles and programs to earn bitcoins. The process is called mining. The bitcoins can be stored in online digital wallets (accounts) and can be transferred to another person’s wallet on any transaction.

Anything from sandwiches and haircuts to booking a flight is possible with bitcoins. The famous Winklevoss brothers recently purchased tickets for Richard Branson’s Virgin Galactic Space expedition using bitcoins, reportsThe Guardian.